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Case Study: Three Myths About Renter’s Insurance

It can be a good feeling to get through life with the confidence that nothing bad will happen unexpectedly to you. That’s also the dilemma that the insurance companies work hard to overcome to provide adequate coverage in the market. It’s also the reality I face every day as a property restoration professional. The value of renter’s insurance is not realized until it is too late. The sad part is that the often-affordable cost of basic coverage is dismissed because, “it didn’t seem important at the time.” The major objections to securing and maintaining renter’s insurance are also the myths.

Renter's Insurance Helps Rebuild Lives

“I don’t own anything valuable.” - This is a matter of opinion, and perhaps your clothing and furniture are not designer collector’s items, but they are still yours. I always urge people to consider the price of even a modest mattress to start understanding the costs of putting their lives back together. Furniture and clothing are not cheap even when it is used. They are your basic needs and you cannot live without them.

“It’s the landlord’s responsibility.” - Review your lease. The landlord/ property owner is responsible for the dwelling, not your personal belongings. You are not protected by the goodwill of your landlord, and rarely are they in a position to assist you when you chose not to get renter’s insurance.

“I cannot afford renter’s insurance.” - I would not be so bold as to assume anyone’s financial capabilities, but often renter’s insurance is a fraction of one month’s rent for an entire year’s worth of coverage. The bottom line: when something bad happens and you look back, you would have found a way to cover the cost.

Fortunately, there are organizations like the American Red Cross to assist victims of floods and fires, but they can only do so much, and at some point, it will be up to you to put your life back together. Renter’s insurance is not a cure-all in a disaster, but you will recover much quicker and with a lot less uncertainty. I share this with you because I have this conversation with way too many customers when it’s too late. They have to start their lives over again because they fell into the traps that are the myths of renter’s insurance.